September 26, 2012

Shimizu Corporation Re-opening Yangon Office after 13 Years’ Dormancy

Shimizu Corporation (TOKYO:1803) will re-open its Yangon branch office on 1st October, 2012. Shimizu’s operation in the commercial capital of Myanmar initially started back in 1996, but had remained dormant since 1999 due to the shrinking of Myanmar’s construction market. The recent return of foreign direct investment and the relaxed economic sanctions after the parliament’s special election in April, 2012, has prompted Shimizu to re-enter the market.

Myanmar’s wage levels and a diligent workforce who possess a good command of English makes it more competitive than other South and Southeast Asian countries; this leads one to rationalize that more and more foreign companies, particularly in the manufacturing and service industries, are expected to advance into Myanmar. Japanese companies may be particularly attracted by Thilawa and Dawei industrial areas, as both are well-known.

One bottleneck toward increased foreign investment is the insufficient supply of social infrastructure, e.g., unstable supply in electricity and other public utility services, as well as shortage of real-estate for foreign expatriates. In Yangon, for instance, frequent blackouts and office rent that triples in a year are problems. Mitigation requires construction of more facilities, and demand for power stations and housing may precede that of manufacturing facilities.

The branch office is located on the 3rd floor of an office complex facing Inya Lake, and is reachable via a 20 minute drive from both Yangon’s city center and the Mingaladon International Airport. Yangon Branch is under the control of our Bangkok Regional Office, and will be staffed by 3 Myanmar nationals mainly involved in information gathering for construction projects in the country.

< References >

1. Physical Address of Yangon Branch

Official Name	:	Shimizu Corporation (Yangon Branch)
Address	:	Sedona Business Suite. Room #03-16 Level 3, No.1 Kaba Aye Pagoda Road, Yankin Township, Yangon Region, The Republic of the Union of Myanmar Tel : +95-1-544056 Fax: +95-1-544064

2. Thilawa Industrial Area

Located in Thilawa Special Economic Zone (SEZ), this area will be developed in collaboration with public and private institutions from Japan. The development concept of Thilawa Industrial Area is a “Smart City” that is equipped with the leading edge in infrastructure; it is planned approximately 24 km south of Yangon city, along with the Yangon River, and the total development area of SEZ is planned at 2,400 ha. For Japanese companies, Thilawa SEZ is considered as the most favorable and beneficial investment zone amongst the other 4 SEZ in Myanmar, due to its location close to Yangon and its access to the sea.

3. Dawei SEZ

Dawei SEZ is the first-ever SEZ in Myanmar, located approximately 610 km south of Yangon and 350 km west of Bangkok, Thailand, and faces the Andaman Sea and the Indian Ocean. It is planned as a deep-sea port and an approximately 205 km² plot that surrounds it. In the SEZ, construction of ports, oil factory, steel and petrochemical plants are planned by 2015.

Information provided in this news release is current as of the date of publication. Please note that all such information is subject to change. Please feel free to contact us with any questions.

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